Compass (CPG) AI Stock Analysis

• Market Cap: £42.50B
• Dividend Yield: 1.34%
• Average Volume (3M): 2.93M
• Price to Earnings (P/E): 37.1
• Beta (1Y): 0.49
• Revenue Growth: 7.67%
• EPS Growth: -15.09%
• Country: UK
• Employees: 580,000
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Restaurants
• EPS (TTM): 0.47
• Shares Outstanding: 1,697,430,200
• 10 Day Avg. Volume: 3,519,353
• 30 Day Avg. Volume: 2,926,035
• PEG Ratio: 0.12
• Price to Book (P/B): 5.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,766.88
• Price Target Upside: 10.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: 2,728.00p ▲(8.95%Upside)

Compass Group's strong financial performance and positive corporate events are offset by weak technical indicators and a high P/E ratio, leading to a moderate overall stock score. The company's strategic initiatives and growth potential are significant strengths, but current market trends and valuation concerns present challenges.

Positive Factors

Contract Wins

Strong contract win momentum is seen with the company winning over double its historical pace of net contract wins in USD terms.

Market Positioning

The company is effectively positioned to benefit from pressures caused by the US election and UK Budget, which are expected to accelerate outsourcing.

Negative Factors

Interest Costs

Higher interest costs are 20% more than prior estimates, reflecting higher than expected M&A spend and the impact of debt refinancing.

M&A Impact

M&A/disposals to move to a headwind in H2.

Share Buyback

The lack of share buyback has been noted as a negative factor affecting the stock sentiment.

Compass Business Overview & Revenue Model

Company Description

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.

How the Company Makes Money

Compass makes money primarily through real estate transaction commissions. The company partners with real estate agents who use its platform to facilitate property sales and rentals. Agents pay Compass a percentage of the commission they earn from each transaction. Additionally, Compass generates revenue by offering various ancillary services, such as marketing and advertising support, to real estate professionals. The company's business model is heavily reliant on its ability to attract and retain top-performing agents and to expand its market presence through strategic acquisitions and partnerships with local brokerages.

Compass Financial Statement Overview

Summary

Compass exhibits strong financial health with impressive revenue and profit growth, solid cash flow management, and a stable balance sheet. However, maintaining control over debt levels and enhancing equity proportion could further strengthen its financial position.

Income Statement

Compass has shown impressive revenue growth from 2023 to 2024, with a 35.36% increase. The company maintains a healthy gross profit margin of 33.15% and a solid net profit margin of 3.34%. The EBIT and EBITDA margins of 6.05% and 8.12%, respectively, indicate strong operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

Compass's balance sheet is stable with a debt-to-equity ratio of 0.87, indicating manageable leverage. The return on equity is 20.56%, showcasing efficient utilization of equity capital. An equity ratio of 28.05% suggests a balanced capital structure. While the company maintains a healthy position, slight improvements in equity proportion could enhance stability.

Cash Flow

The company demonstrates strong cash flow management, with a significant operating cash flow to net income ratio of 2.23. Free cash flow has grown by 22.18% from 2023 to 2024, supporting the company's operational and growth activities. The free cash flow to net income ratio of 1.59 further emphasizes positive cash flow generation relative to earnings.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	42.00B	31.03B	25.51B	17.91B	19.94B
Gross Profit	13.93B	1.95B	1.48B	962.00M	3.76B
EBITDA	3.41B	2.74B	2.35B	1.28B	915.00M
Net Income	1.40B	1.31B	1.24B	357.00M	133.00M
Balance Sheet
Total Assets	24.35B	21.48B	18.75B	14.87B	14.73B
Cash, Cash Equivalents and Short-Term Investments	623.00M	1.03B	1.99B	1.84B	1.48B
Total Debt	5.91B	5.27B	4.88B	4.48B	4.72B
Total Liabilities	17.44B	15.18B	12.84B	9.95B	9.92B
Stockholders Equity	6.83B	6.26B	5.87B	4.89B	4.79B
Cash Flow
Free Cash Flow	2.23B	1.83B	1.31B	943.00M	205.00M
Operating Cash Flow	3.13B	2.17B	1.60B	1.17B	914.00M
Investing Cash Flow	-1.49B	-1.23B	-874.00M	-727.00M	-1.10B
Financing Cash Flow	-1.94B	-2.09B	-693.00M	-152.00M	1.28B

Compass Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2504.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPG, the sentiment is Negative. The current price of 2504 is below the 20-day moving average (MA) of 2517.11, below the 50-day MA of 2550.47, and below the 200-day MA of 2573.93, indicating a bearish trend. The MACD of -20.29 indicates Negative momentum. The RSI at 46.63 is Neutral, neither overbought nor oversold. The STOCH value of 73.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CPG.

Compass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	80 Outperform	£1.70B	10.02	6.90%	―	1.95%	275.56%
MARS	73 Outperform	£263.18M	6.00	10.69%	―	0.50%	―
SSPG	72 Outperform	£1.49B	54.23	12.09%	3.01%	14.07%	236.27%
CPG	67 Neutral	£42.50B	37.05	21.77%	1.34%	7.67%	-15.09%
JDW	67 Neutral	£827.00M	14.74	16.38%	0.38%	3.70%	57.10%
DOM	66 Neutral	£998.20M	11.13		5.88%	-2.25%	-18.24%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%

Compass Corporate Events

Compass Group PLC Announces Total Voting Rights and Share Capital

Compass Group PLC has announced its total voting rights and share capital as of June 30, 2025, in compliance with the FCA’s Disclosure Guidance and Transparency Rules. The company has 1,785,403,977 ordinary shares, with 1,697,430,179 admitted to trading and 87,973,798 held in treasury, which do not have voting rights. This announcement is crucial for shareholders to calculate their interests in the company, especially those involved in the American Depositary Receipt Programme on the New York Stock Exchange.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2300.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group Announces Total Voting Rights and Share Capital Update

Compass Group PLC has announced its total voting rights and share capital details as of June 30, 2025. The company has issued 1,785,403,977 ordinary shares, with 1,697,430,179 shares admitted to trading and 87,973,798 shares held in treasury. The total number of voting rights is 1,697,430,179, and treasury shares’ voting rights are suspended. This announcement is in line with the FCA’s Disclosure Guidance and Transparency Rules, and it provides shareholders with necessary information for regulatory compliance and interest notifications.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2300.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group PLC Announces Total Voting Rights and Capital Structure

Compass Group PLC has announced its total voting rights and capital structure as of May 31, 2025. The company has 1,785,403,977 ordinary shares, with 1,697,430,179 shares admitted to trading and 87,973,798 held in treasury. The announcement highlights the company’s compliance with the FCA’s Disclosure Guidance and Transparency Rules, and the total voting rights figure is crucial for shareholders to determine their interest in the company. This update is significant for stakeholders as it provides clarity on the company’s share capital and voting rights, potentially impacting shareholder decisions and market perceptions.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2300.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group Reports Strong Half-Year Results with Double-Digit Profit Growth

Compass Group PLC announced its half-year results for 2025, highlighting a strong performance with an 8.8% increase in revenue to $22.6 billion and an 11.6% rise in underlying operating profit. The company achieved double-digit profit growth driven by strong organic revenue and margin progression, supported by a robust client retention rate of over 96% and a significant pipeline of new business. The company continues to invest in growth through capital expenditure and mergers and acquisitions, while reshaping its portfolio by exiting non-core markets. With its resilient business model and sectorised approach, Compass is well-positioned to benefit from increasing outsourcing trends and expects continued profit growth ahead of revenue growth.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2300.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.